SEOUL, March 18 (AJP) - The global memory semiconductor market is exhibiting signs of a long-awaited recovery, as industry forecasts indicate a reversal in price trends for DRAM and NAND flash chips.
Analysts suggest that Samsung Electronics, after enduring a prolonged downturn, may experience an earlier-than-expected resurgence.
According to TrendForce, a market research firm, the first-quarter price forecast for PC DRAM, specifically DDR5 16Gb chips, has been revised upward from $3.50 to $3.80.
While prices remain lower compared to the previous quarter, the rate of decline is expected to slow from 11.4 percent to 4.2 percent.
A price rebound is anticipated beginning in the second quarter, with DDR5 prices projected to rise 3 percent to $3.90, followed by an increase to $4.20 in the third quarter — a 29 percent upward revision from an earlier February estimate of $3.30. The firm expects supply-demand imbalances to be resolved in the latter half of the year.
The optimistic outlook comes amid a recovery in DRAM spot prices that began in early March and is expected to persist through the remainder of 2024.
Currently, the DDR5 spot price stands at $5.088, marking a more than 7 percent increase from $4.74 on Feb. 12. TrendForce attributes the price adjustments to production cuts by major semiconductor manufacturers, reduced customer inventory levels, and surging demand fueled by the artificial intelligence boom.
A resurgence in DRAM prices is being driven in part by increased orders from key consumer markets, particularly smartphones and personal computers.
Notably, China’s expanded subsidy programs aimed at replacing outdated devices with new ones have significantly bolstered IT consumption in the region.
Meanwhile, the NAND flash market is showing similar signs of recovery. SanDisk, a U.S.-based NAND flash manufacturer, has announced plans to raise prices by more than 10 percent starting April 1. Other industry players, including Micron and China's Yangtze Memory Technologies Co. (YMTC), have followed suit with similar pricing adjustments.
reporter
Candice Kim
candicekim1121@ajupress.com
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